What is the best time of year to visit Portugal for cheaper hostel prices?

September and October are the sweet spot. Summer crowds are gone, temperatures are still warm (22–26°C in Lisbon), and hostel dorm prices typically drop from €30–35/night to €18–24/night. The beaches are still swimmable and much less crowded. Best of both worlds.

Spring (March to May) is equally good for budget travelers. Prices are low, the countryside is lush and green, and you get fewer crowds at major sites. Weather can be unpredictable with some rain, but mostly mild and very pleasant for sightseeing.

January and February are the absolute cheapest months. Some hostels cut dorm prices to €12–16/night. Lisbon and Porto are still fully open with good weather by southern European standards — expect highs of 14–16°C. Perfect if you dislike heat and crowds.

Avoid late July and August if you're on a tight budget. Dorm prices spike to €35–45/night in popular Lisbon hostels, and the Algarve can hit €40–55/night for a basic bunk. Book months ahead if you must travel in summer — prices are non-negotiable.

Don't forget Easter week — prices spike nationwide as it's a major Portuguese holiday and schools are on break. I made the mistake of booking during Holy Week and paid almost summer prices in April. Always check the Portuguese public holiday calendar before booking.